US stock futures slump as Brexit reality 'sets in'

November 30,-0001 00:00

U.S. markets were closed for normal trade on Monday for Independence Day, but stock futures still traded and logged small gains. Those moves came after both the Dow average DJIA, +0.11% and S&P 500 index SPX, +0.19% last week scored their best ...

U.S. stock futures fell on Tuesday, as investors returned from the long holiday weekend to more Brexit-fueled uncertainty and opted for caution ahead of the closely watched U.S. jobs report on Friday. Futures for the Dow Jones Industrial Average

YMU6, -0.47%

Â dropped 78 points, or 0.4%, to 17,788, while those for the S&P 500 index

ESU6, -0.52%

Â lost 10.05 points, or 0.5%, to 2,086.50. Futures for the Nasdaq-100 index

NQU6, -0.54%

Â fell 21.25 points, or 0.5%, to 4,412. U.S. markets were closed for normal trade on Monday for Independence Day, but stock futures still traded and logged small gains. Those moves came after both the Dow average

DJIA, +0.11%

Â and S&P 500 index

SPX, +0.19%

Â last week scored their best week in 2016, clawing back some of the steep losses logged in the wake of the U.K.â€™s vote to leave the European Union. Better-than-expected U.S. data and hopes that central banks will step up to calm markets were seen as helping boost stocks last week. â€œStock markets have snapped a 5-day liquidity driven rally [on Tuesday] as investors began to look beyond expectations of more cheap money to the reason why central banks may be forced to ease further,â€ analysts at Rabobank said in a note. â€œArguably it was inevitable that the reality of a bleaker economic outlook would begin to set in. It may now only be a matter of time before investors once again begin to wonder whether the central banks really have the ammunition to counter the headwinds that face the global economy,â€ they added. The Bank of England is expected to cut rates from an already record low of 0.5% when it meets next week. BOE Governor Mark Carney said during a Tuesday press conference after the bankâ€™s Financial Stability Report came out that it is important any monetary policy action focuses on the domestic economy. Carney also said the risks in the aftermath of the vote have â€œbegun to crystallize.â€ Minutes from the Federal Reserveâ€™s June meeting â€” held ahead of the Brexit referendum â€” are out Wednesday at 2 p.m. Eastern Time. The renewed Brexit jitters on Tuesday sent waves through the currency market. The pound

GBPUSD, -1.1589%

Â dropped to a fresh 31-year low against the dollar at $1.3114, but trimmed losses to $1.3182 as Carney spoke. The yen

USDJPY, -0.78%

Â rallied against the dollar, with the greenback buying Â¥101.75, compared with Â¥102.55 on Monday. Economic news: Ahead of a busy data calendar later this week, the only major release Tuesday is factory orders for May, due at 10 a.m. Eastern. The forecast is for a fall of 0.8%, compared with a rise of 1.9% the previous month. The highlight of the week is the top-tier nonfarm payrolls report out on Friday. After a puny 38,000 jobs were added to the economy in May, economists polled by MarketWatch forecast 175,000 jobs were added in June. Read: Goldilocks jobs report for June would be â€˜just rightâ€™ See also: MarketWatchâ€™s economic calendar

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Movers and shakers: Oil companies were among biggest premarket decliners, as crude

CLQ6, -2.63%

Â slumped more than 2%. Shares of Southwestern Energy Co.

SWN, +3.42%

Â dropped 2.4%, Transocean Ltd.

RIG, +7.23%

Â fell 2%, and Exxon Mobil Corp.

XOM, +0.11%

Â gave up 0.8%. In other oil news, Chevron Corp.

CVX, -0.65%

Â and Exxon on Tuesday committed to a $36.8 billion oil expansion project in Kazakhstan. Shares of McDonaldâ€™s Corp.

MCD, +0.05%

Â could also be active on Tuesday after the fast food chain won a legal case in the European Union about other companies using the prefix â€œMacâ€ or â€œMcâ€. Other markets: Asian markets closed mostly lower, although stocks in Shanghai

SHCOMP, +0.60%

Â rose as Chinese investors became more hopeful about President Xi Jinpingâ€™s calls for state-owned enterprise reform. European stocks